Boone5650 Boone5650

25-11-2022
Business

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Assume that the interest parity condition holds. Also assume that the U.S. interest rate is 8% while the U.K. interest rate is 6%. Given this information, financial markets expect the pound toA) depreciate by 14%.B) depreciate by 2%.C) appreciate by 2%.D) appreciate by 6%.E) appreciate by 14%.

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